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Yokogawa Sustainability Book

Yokogawa Sustainability Book · providing education, training, and employment in local communities. Yokogawa Sustainability Goals Three goals Statement on Yokogawa’s Aspiration

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Page 1: Yokogawa Sustainability Book · providing education, training, and employment in local communities. Yokogawa Sustainability Goals Three goals Statement on Yokogawa’s Aspiration

YokogawaSustainability Book

Page 2: Yokogawa Sustainability Book · providing education, training, and employment in local communities. Yokogawa Sustainability Goals Three goals Statement on Yokogawa’s Aspiration

The Sustainable Development Goals (SDGs) consist of 17 goals and 169 targets addressing universal issues such as ending poverty and hunger, ensuring sustainable consumption and production, combating climate change, and more. These SDGs were adopted formally by the United Nations in September 2015.Under the pledge that no one will be left behind, the SDGs are the universal goals for both advanced and emerging economies, with a heavy focus on the role played by corporations.

Sustainable Development GoalsAdopted in December 2015, the Paris Agreement was the first-ever framework under which all signatory nations have targets for reduced greenhouse gas emissions.The agreement aims to balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century. Specific targets include holding the increase in the global average temperature to well below 2℃ above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 ℃ .

Paris Agreement

Working for Sustainability

Scientists regard the increase of greenhouse gas emissions due to fossil fuel use as one factor behind climate change. Climate change may have a grave impact on future generations ways that include increasingly severe flooding, typhoons, infectious diseases, and more.Yokogawa Initiatives: Solutions for renewable energy; support to supply of LNG and other low-carbon energy sources

In 1900, the global population was 1.6 billion. By the year 2050, world population will likely top 10 billion.Our traditional economies based on mass production, mass consumption, and mass waste threaten the water, energy, mineral, and other needs of future generations.Yokogawa Initiatives: Solutions for stable operations, greater efficiencies, and resource recycling throughout relevant system lifecycles

The world has woken up to the need for building a sustainable society. Countries and companies from across the globe are working to solve global issues through shared goals such as the Sustainable Development Goals (SDGs) and the Paris Agreement.At Yokogawa, we pursue global business based on our corporate philosophy. As a company, our goal is to contribute to society through broad-ranging activities in the areas of measurement, control, and information. Individually, we aim to combine good citizenship with the courage to innovate. We work together with customers in the energy, industrial materials, pharmaceuticals, foods, social infrastructure, and other industries. As we solve customer issues, we make a major contribution to a sustainable society.In 2017, Yokogawa released a statement on its aspiration for sustainability for the year 2050. This publication provides our vision for society in 2050, as well as the path by which we resolve issues and create value on our journey forward.

Environmental Issues

The more society develops, the more we become aware of issues such as food, health, gender, education, safety, and employment. Demand rises for human health and abundant living.Yokogawa Initiatives: Solutions for life innovations in pharmaceuticals, foods, etc.; creation of safe and comfortable workplaces

Social Issues

Economic Issues

Growing Trends towards SustainabilityWith the advent of the Industrial Revolution, human activity has become more complex. Populations have grown, economies have developed, much of the world has globalized. This progress has brought with it a number of serious issues. Seeing these issues, the United Nations proposed the idea of sustainable development. What is sustainable development? It is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable development should be achieved in its three dimensions − economic, social and environment − in a balanced and integrated manner.

Yokogawa Sustainability Book2

Page 3: Yokogawa Sustainability Book · providing education, training, and employment in local communities. Yokogawa Sustainability Goals Three goals Statement on Yokogawa’s Aspiration

Yokogawa Sustainability Book 3

Building the Future with Our CustomersYokogawa has contributed to solving problems for customers across a wide range of industries.Our initiatives have done more than simply increase economic value of our customers. We have contributed to solving social and environmental issues, including energy conservation, resource conservation, greenhouse gas reduction, improved safety, and other accomplishments that fall in line with the SDGs.We work with our customers to identify and solve problems over the entire range of their business activities as we journey to a sustainable future.

Yokogawa Strengths Customer Industries

Business Focus Areas

Yokogawa Sustainability Goals for the Year 2050

Universal Goals for the Year 2030

Natural resources, energy, and material-related industriesIndustries supporting health and the enrichment of livesBio-economy business

OilPetrochemicalsChemicalsIron/SteelPulp/PaperGas/LNGPowerPharmaceuticalsWater/WastewaterFoodsMotors/InvertersAutomobilesMachinery/MechatronicsMedical EquipmentLife SciencesMarine EquipmentAviation/AerospaceEnvironmental Measurement...and more

Industry know-how

Rich installed base mainlyin Asia and Middle East

Problem-solving ability

Chemical

LNG

Japan

Power

Middle East

Water

China

DownStream

Southeast Asia

ImpactInput Activity Output Outcome

Yokogawa CustomersSociety/

Environment

Customer Business Innovation and Productivity Improvement

A Brighter Future

Three goals

Environmental

Make transition to

Social Economic

Environmental

Achieve

net-zeroemissions well-being circular

economy

Social

Ensure

Economic

Make transition to

Down Stream: the latter stage of oil and gas industry such as oil refining and transportation

Page 4: Yokogawa Sustainability Book · providing education, training, and employment in local communities. Yokogawa Sustainability Goals Three goals Statement on Yokogawa’s Aspiration

Net-zero emissions Stopping climate changeClimate change is an urgent issue that requires a united global response.Our goal is to reach net-zero emissions through the use of renewable energy and greater energy efficiency. By net-zero emissions, we mean a balance between greenhouse gas emissions and absorption, preventing an increase in the concentration of greenhouse gases in the atmosphere.

* Yokogawa operates under the corporate brand slogan Co-innovating tomorrow. Co-innovating conveys our determination to continually engage in the co-creation of value with our clients by working with them in long-term partnership to develop solutions.

Circular economy Circulation of resources and efficiencyWe are seeing a movement that rejects the one-way take, make, and dispose economy. This new economy circulates resources and emphasizes services over physical products.Yokogawa aims for making a transition to a circular economy that uses resources without waste and makes effective use of assets.

Well-being Quality life for allWell-being means a state of physical, mental, and social contentment.Yokogawa supports people's health and prosperity through the achievement of safe and comfortable workplaces and our pursuits in such areas as the pharmaceutical and food industries.We promote diversity and inclusion, providing education, training, and employment in local communities.

■ Yokogawa Sustainability Goals Three goalsStatement on Yokogawa’s Aspiration for Sustainability

Yokogawa will work to achieve net-zero emissions, make a transition to a circular

economy, and ensure the well-being of all by 2050, thus making the world a better

place for future generations.

We will undergo the necessary transformation to achieve these goals by 1. becoming

more adaptable and resilient, 2. evolving our businesses to engage in regenerative

value creation, and 3. promoting co-innovation with our stakeholders.

Three Goals for 2050

Top Commitment

Companies have a growing responsibility to respond to issues such as population growth and

the rising use of fossil fuels that are addressed in the Paris Agreement and the SDGs. Yokogawa

provides solution that improve the stability, efficiency, and safety of operations at industrial

plants and other infrastructure facilities by, for example, speeding up processes,

reducing workloads, and saving energy.

For the achievement of the sustainability goals, Yokogawa will work harder

to broaden its solutions so that it can address other issues that impact our

society and continue to create new value through co-innovation with our

customers and partners.

Takashi NishijimaPresident and Chief Executive Officer

Yokogawa released the statement on its aspiration for sustainability and established Three goals for the year 2050, contributing to making the world a better place for future generations. These goals will help us turn our vision for society in the year 2050 into a reality.Our Three goals cover three aspects of sustainability related to the environment, society, and the economy, namely, net-zero emissions, well-being, and circular economy.

Environmental

Make transition to

Social Economic

Environmental

Achieve

net-zeroemissions well-being circular

economy

Social

Ensure

Economic

Make transition to

Three goals

Yokogawa Sustainability Book4

Page 5: Yokogawa Sustainability Book · providing education, training, and employment in local communities. Yokogawa Sustainability Goals Three goals Statement on Yokogawa’s Aspiration

Yokogawa Sustainability Book 5

Creating Value for the Three Goals

■ Business Focus Areas and Value Creation Themes ■ Yokogawa Value Creation Story

Contribution to Society

Cust

omer

Eco

nom

ic V

alue

Relevance to SDGs

Well-being

Net-zero emissions

Circular economy

Safety and health value creation:1 trillion yen in FY2030

Resource efficiency improvement:1 trillion yen in FY2030

Avoided CO2 Emissions: 1 billion tons from FY2018 to FY2030

Advanced solutions

Consulting toimprove productivity

Improvement of waterenvironment

Long-term stable operation of plant

Low-carbonenergy

Improved productivity in manufacturing/processing of pharmaceuticals/foods

Improvementof safety

Support development of drugs andbiopharmaceuticals

On-site maintenancesolutions

Renewableenergy

Co-creationenvironment

Yokogawa works with our customers to identify and solve problems over the entire range of their business activities, thus aiding them in their efforts to innovate and improve productivity. This activity leads ultimately to the creation of an abundant society.This process (Input → Activity → Output → Outcome → Impact) is what we call our Value Creation Story.We will achieve the Three goals by expanding and building on our Value Creation Stories.

ImpactInput Activity Output Outcome

Yokogawa CustomersSociety/

Environment

Identify and Solve Customer Problems Customer Economic

ValueA Brighter Future

At Yokogawa, we use narratives to help us achieve our Three goals for sustainability. Each narrative is a Value Creation Story that describes a specific process creating social and environmental value through our customers.Each Value Creation Story has been collected and categorized into value creation themes according to value creation type from the standpoint of the Three goals and the SDGs. We have evaluated these themes on a scale of customer economic value and contribution to society (social/environmental value).Based on our evaluations, we set three business focus areas related to Yokogawa Group initiatives and aspirational targets for the year 2030.

Page 6: Yokogawa Sustainability Book · providing education, training, and employment in local communities. Yokogawa Sustainability Goals Three goals Statement on Yokogawa’s Aspiration

Yokogawa Sustainability Book6

Sustainability Targets for 2030

Vision toward

2050 (Three Goals)

Mid-term Targets

for the Year 2030

Business Focus Areas and Overview

of Value Creation Stories

Related SDGs

Renewable and low-carbon energy

Contribute to avoid CO2 emissions through offering of renewable energy

and LNG solutions

Life innovation and safety

Support people's health and prosperity through provision of life-innovation solutions

and assurance of safe and comfortable workplaces

Energy saving and resources

Contribute to sustainability and economic growth through stable and efficient operation

and resource regeneration

Avoided CO2 emissions

Target: 1 billion tons(Cumulative from FY2018 through FY2030)

Safety and health value creation

Target: 1 trillion yen(FY2030)

Resource efficiency improvement

Target: 1 trillion yen(FY2030)

net-zero emissions well-being circular economy

To achieve our Three goals for the year 2050 and to play our part in realizing the SDGs, Yokogawa has defined three business focus areas and specific mid-term targets for the year 2030. These focus areas and targets address net-zero emissions, well-being, and circular economy.We have incorporated these targets into our business plans, to be pursued group-wide.

Stopping climate change Quality life for all Circulation of resources and efficiency

Page 7: Yokogawa Sustainability Book · providing education, training, and employment in local communities. Yokogawa Sustainability Goals Three goals Statement on Yokogawa’s Aspiration

The Value Creation Themes and Underlying FoundationsYokogawa is making steady progress toward a sustainable society for future generations through our work on behalf of our customers.The following section introduces value creation themes in three business focus areas with case studies, as well as efforts of human resources and environmental management initiatives in support of value creation.

Environmental

Make transition to

Social Economic

Achieve

net-zeroemissions well-being circular

economy

Ensure Make transition to

Effective Utilization on Customer Assets Through Long-Term

Partnership

Advanced Drug Discovery Solutions

Yamal LNG Project Contributes to a

Low-Carbon Society

Human resources and environmental management as foundations of value creation

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Page 8: Yokogawa Sustainability Book · providing education, training, and employment in local communities. Yokogawa Sustainability Goals Three goals Statement on Yokogawa’s Aspiration

Sustainability Target for 2030

Value Creation Themes

Feature

Low-Carbon Energy

1 Renewable energyContribute to the growth of renewable energy through solutions for the monitoring, control, data collection, and facilities maintenance for the stable and efficient operation of wind, biomass, and other sources of renewable energy.

2 Low-carbon energyCreate a safe and efficient LNG supply chain in concert with customers and partners to respond to increasing demand for LNG, a source of low-carbon energy. Here, we will bring our wealth of experience and history of success in the natural gas and LNG instrument industry to bear.

Yokogawa Set up a global project structure, provide instrument systems supporting large-scale production plants

Customer Conduct safe and efficient LNG plant operations in harsh conditions as low as -50° C

Society/Environment Transition to low-carbon by shifting away from oil and coal to natural gas which emits much lower levels of CO2

Stopping Climate ChangeCase Study: Yamal LNG Project Contributes to a Low-Carbon Society

Contribution to avoidance compared to average fossil fuel usage

Yokogawa pursues renewable and low-carbon energy as business focus areas through which we will achieve net-zero emissions.We have built long-term relationships of trust with customers in the energy industry based on our numerous successes in this field. We leverage these relationships to offer solutions for renewable energy and safe and highly reliable control systems for greater LNG supply chain efficiency, contributing to reduced greenhouse gas emissions. The Yamal LNG Project is one of the largest resource development projects

in Russia, located on the eastern shore of the Yamal peninsula in the arctic region of Northwest Russia. Ultimately consisting of three trains, the project will have the capacity to produce an annual total of 16.5 million tons of LNG. Recently completed, Trains 1 and 2 began shipping to worldwide destinations from December 2017 and August 2018.Our involvement in the project consists of product and system engineering, installation, testing, and operations training. Our instrument system serving as the brains and nerves of large-scale production plant includes the CENTUM® VP (integrated control system), ProSafe®-RS (safety instrumented system), Exaquantum ™ (plant information management system), PRM® (integrated equipment management software package), analyzer shelter (installation and storage for analysis and sampling equipment), training simulators, and more.We have built a structure to oversee this large-scale project, headed by our regional management company of Europe in the Netherlands and overseeing group companies located in Singapore, India, the Philippines,

Russia, and other countries. We worked toward the plant launch through the efforts of employees from many different countries. We assign resident engineering staff to perform 24/7 support for mission critical plants in operation in the Arctic. We also provide remote support from Moscow to monitor system health on an ongoing basis, contributing to the safe and efficient operation of the LNG plant.Natural gas emits much lower levels of CO2 compared to coal, oil, or other fossil fuels. Natural gas is not only in demand for electricity production, but also enjoys increasing demand in industry and transport where electricity is difficult to use as a source of energy.By helping Asia and other regions shift to natural gas and away from oil and coal, we work together with our customers to encourage the development of a low-carbon society.

Avoided CO2 Emissions: 1 billion tons(FY2018-2030 cumulative)

The Yokogawa global mother factory is located at our Kofu Factory. In this factory, we utilize our own products and solutions to create visibility for facility and energy usage.Many customers visit this factory every year, seeing it as a model of plant energy efficiency.

net-zero emissions

It is both a privilege and a challenge to lead a major programme like YAMAL LNG. The size of the project; the extreme geographical location; and the organisational and technical complexity are challenges that we have to overcome. On the other hand, the opportunity to work and collaborate with many of our Yokogawa offices in Europe, Asia and Russia is a noteworthy experience.With the production capacity of YAMAL LNG contracted mostly to consumers in the Far East, I like to think that in some form we are able to contribute in the decades to come towards the low carbon energy transformation of Asia, and in simple terms to improve the quality of life of people in cities like Beijing, Seoul, Tokyo and hopefully Manila (where I’m originally from) – to breath cleaner air.

Message

Marvin Nepomuceno Project Director Yokogawa Europe Solutions B.V.

Value Creation Theme

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Page 9: Yokogawa Sustainability Book · providing education, training, and employment in local communities. Yokogawa Sustainability Goals Three goals Statement on Yokogawa’s Aspiration

Yokogawa Sustainability Book 9

1 Improved productivity in manufacturing/processing of pharmaceuticals/foodsWe leverage our technologies in measurement, control, and information, combined with our experience across a range of industries, to introduce leaps forward in production throughout the entire value chain, from basic research to logistics and services.

2 Support development of drugs and biopharmaceuticalsWe support efficient development and production of highly safe pharmaceuticals through drug discovery support technologies including confocal microscopes, cell image analysis, and bioreactors.

3 Improvement of safetyWe contribute to improved safety at customer plants through integrated process control and safety instrumented systems, operating training simulators, cyber security solutions, and other safety solutions.

4 On-site maintenance solutionsWe provide facilities management and consulting that result in low-workload, safe and efficient plant management.

Support Development of Drugs and Biopharmaceuticals

Quality Life for AllCase Study: Advanced Drug Discovery Solutions

Contribution to customer/social safety and health in the fields of life

innovation and safety

Single-cell gene analysis is one single-cell solution that makes composite analysis of individual cell morphological information and gene expression possible for the first time.My role is to secure technologies that provide for the stable recovery of genes from extracted cells.I am involved in equipment development and improving sample extraction equipment. At the same time, I conduct experiments in ways to recover trace amounts of genes from a single cell.We believe this technology is effective in uncovering the role of organoids*1 produced in cancer tissue and iPS cells, as well as other individual cells from within heterogeneous*2 aggregations.I hope that Yokogawa systems can be useful in people's lives, contributing to the development of cancer treatment and regenerative medicine.

Message

Tomoko Hirai Bio Solution Center R&D, Life Innovation Business Headquarters, Yokogawa Electric Corporation

Safety and Health Value Creation: 1 trillion yen (FY2030)

Confocal Microscope Imaging Technology for observing living cells and tissues in 3D

Yokogawa Support bio antibody and other leading-edge drug development and production through solutions and services

CustomerReduce cost of drug discovery significantly and develop highly effective leading-edge pharmaceutical rapidly

Society/Environment Leading-edge pharmaceuticals and treatments available more quickly to more people

We address well-being mainly through our solutions for life innovation and safety.We have deep experience in process control, as well as a record of successful co-innovation with customers doing business in the medical facilities, food, resources, and other fields. We leverage these experiences and expertise solutions ranging from research and development to production and distribution services, facilitating safe and healthy lifestyles for all.

The Sustainable Development Goal 3 is to “Ensure healthy lives and promote well-being for all at all ages.” This goal emphasizes the importance of research and development leading to creation of innovative drugs. Yokogawa was one of the first companies to be active in this field. The confocal microscope is one example of our contributions. This equipment has made a major contribution to explain the mechanisms behind the mysteries and illnesses of life that have been veiled for so long in basic medical and biological research and development. Today, our confocal microscopes are being used in prominent research projects in the fields of molecular biology and genetic engineering. These research projects are said to be candidates for future Nobel Prize consideration.We have created a drug discovery support system based on confocal microscope imaging technology, image processing technology, and AI technology. This system facilitates the rapid screening of the efficacy and toxicity of an enormous number of sample compounds, dramatically reducing the time and cost involved in drug discovery.Yokogawa is involved in research and development for single-cell solutions

in medical treatments. Single-cell solutions are techniques that use confocal imaging to accurate recover and analyze the constituents of a single target cell. This technology is vital for explaining the diversity and interaction mechanisms of individual cells, and is hoped to be used in simple specific diagnosis of cancer and in individual medical treatments using applications of genetic engineering.We also plan to enter the fields of biopharmaceuticals (medicines produced by cells) and regenerative medicine (using cells) in the future. We believe applications of Yokogawa measurement, control, and information technologies for cell research and development will improve the productivity of innovative biopharmaceuticals. And, by managing information across the entire value chain, we will be able to generate improvements in quality and efficiency. Many regions across the world, particularly in the emerging countries of Asia, are waiting eagerly for advanced drugs and medical treatments. Yokogawa solutions and services will play an important role in providing advanced drug and medical treatments to more people more rapidly.

Sustainability Target for 2030

Value Creation Themes

well-being

*1 Organs created in 3D in test tubes, etc. *2 Mixture of different types of cells

Value Creation Theme

Page 10: Yokogawa Sustainability Book · providing education, training, and employment in local communities. Yokogawa Sustainability Goals Three goals Statement on Yokogawa’s Aspiration

Yokogawa Contribute to efficient and stable operation of plant by providing maintenance services of control system for more than 20 years

Customer Reduce total cost of ownership (TCO) through life cycle with effective use of large-scale plant facilities

Society/Environment

Preventing pollution by plant operation considering the environment and providing high quality products to society

Circulation of Resources and Efficiency

Case Study: Effective Utilization on Customer Assets Through Long- Term Partnership

The Bahrain Petroleum Company (M/s BAPCO) is the first refinery

established in the Arabian Gulf. Since its inception, BAPCO has held a

sustainable goal towards health, safety and environmental commitment.

BAPCO had the 1st Distributed Control System of Yokogawa supplied in

1994 and over the last 24 years, all the Process Control Systems operating

in BAPCO are maintained by Yokogawa. Yokogawa is recognized as a value-

added partner in BAPCO’s quest for excellence towards environmental

responsibilities. Yokogawa maintained BAPCO's Process Control System

from 1997 to 2011 under the Annual Maintenance Contract and from 2012

onwards it has done so under Yokogawa's flagship concept of maintenance

known as the Life Cycle Agreement (LCA), which will support BAPCO until

2022. As partners, BAPCO and Yokogawa have been successful in managing

the large Process Control System installation with due diligence and the Life

Cycle Agreement, which ensures that their equipment & instrument assets

are always available, reliable, healthy and up-to-date and helps to reduce

TCO (Total Cost of Ownership). With the continuous engagement between

Yokogawa and BAPCO through the Life Cycle Agreement, maintaining the

Process Control System and resolving any issues related to the system

have been immensely helpful in enhancing the skillset of incumbents. The

proactive approach towards the joint goal of environmental responsibility

has ensured that Yokogawa is accepted more as a service solution partner

rather than a mere service provider.

We believe that not only the recycling of resources but also diverse

efforts to improve efficiency of the entire lifecycle contribute to a circular

economy. Yokogawa with its systematic life cycle plan, obsolescence

management and continuous engagement with BAPCO has safeguarded

the Process Control System over the years and provided the path forward

for upgrade and migration of the systems. BAPCO and Yokogawa aim

for a sustainable future as common responsibilities to the industry and

society.

Resource Efficiency Improvement: 1 trillion yen (FY2030)

Yokogawa introduced the concept of a lifecycle agreement to BAPCO, listening to the pain points of the BAPCO maintenance team. Yokogawa Middle East & Africa identified concerns related to training, variable replacement costs, and performance evaluations/analyses of field instruments, providing a comprehensive proposal to BAPCO, which BAPCO management signed for multiple years. Yokogawa performed numerous modification projects and upgrades, resulting in up-to-date automation assets, improved systems efficiency, and increased stability of operations. During the delivery of lifecycle services, BAPCO contracted an additional eight Yokogawa process control systems and one safety system. BAPCO also asked Yokogawa to include these systems in the renewed contracts, as well as add mandatory lifecycle parts replacements in the lifecycle agreement renewal.

Message

Shamik Dev Assistant Manager, Regional Service Division, Yokogawa Middle East & Africa B.S.C. (c)

Sustainability Target for 2030

Value Creation Themes

1 Improvement of water environment We offer water environment technologies and solutions such as leak monitoring and operational systems for water and sewerage networks that ensure the security and efficiency of water supplies while at the same time promoting effective water usage.

2 Advanced solutionsWe optimize temperature, flow rate and pressure parameters in complex production processes to maximize product yields while minimizing energy and resource consumption.

3 Consulting to improve productivityOur consulting and solution services optimize production processes to improve overall plant efficiency and operational stability.

4 Long-term stable operation of plant We provide products and services to maintain ongoing operational stability throughout the plant life cycle, encouraging the efficient use of resources.

Resource efficiency improvements delivered to customers through consulting

and solution services

Solution and services to reduce consumption of energy and resources are a core part of our business to the ultimate goal of a circular economy.We offer digital technology consulting and advanced solutions and supply a range of long-life, environmentally-friendly products designed to ensure operational stability and efficiency throughout the system life cycle. We also aim for transformation into resource recycling business model.

Long-Term Stable Operation of Plantcircular economy

Value Creation Theme

Photo: Bapco Archive

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Page 11: Yokogawa Sustainability Book · providing education, training, and employment in local communities. Yokogawa Sustainability Goals Three goals Statement on Yokogawa’s Aspiration

・Water usage・Energy consumption Target: 18% reduction by FY2030 (compared to FY2013)

・Greenhouse gas emissions Target: 34% reduction by FY2030 (compared to FY2013)

The Yokogawa environmental management program involves ongoing evaluation of factories and offices throughout the Yokogawa Group according to three key sustainability indicators: (1) water usage efficiency; (2) energy consumption; and (3) greenhouse gas emissions.We have set a long-term greenhouse gas emissions reduction target for the year 2030 based on the 2° C target defined in the Paris Agreement.

Foundations of Value Creation

Environmental Management

Sustainability Indicators

Value Creation Themes

Value Creation Themes1 Diversity and inclusion

Yokogawa seeks to attract, cultivate, and engage with people who bring different life experiences, skills and competencies, sensibilities, perspectives, cultures, and value systems to our organization. This is how we adapt and respond effectively to an ever-evolving industry environment, as well as to the varying demands of the marketplace.

2 Talent attraction and engagement

Our global talent management program inspires employees to create new forms of value through co-innovation. We strive to provide a safe and welcoming workplace environment that encourages every employee to be their best.

3 Elimination of occupational accidents

Occupational health and safety are important underlying elements of corporate management. We are committed to ensuring the health, well-being, and safety of all employees in the Yokogawa Group.

1 Promotion of efficient use of water resources

We promote efficient use of water resources by monitoring water usage at production facilities and encouraging recycling of water used in production.

2 Reduction of energy consumption

We are committed to reducing energy consumption via digitization of administrative procedures and processes and strategies to optimize group-wide production through greater labor productivity.

3 Reduction of greenhouse gas emissions

The Yokogawa Group is committed to reducing greenhouse gas emissions in line with the 2° C target set out in the Paris Agreement. We will accomplish this goal through strategies designed to reduce energy consumption and our active use of renewable energy sources.

Human Resources Management

Shamik Dev Assistant Manager, Regional Service Division, Yokogawa Middle East & Africa B.S.C. (c)

Sustainability Indicators

・Female ratio out of total number of   managers

・Disability employment rate (Japan)

・Engagement survey score・Frequency of occupational accidents

Yokogawa has established sustainability indicators for the following two fields as the foundations for achieving sustainability. One is human resources management to make our transformation and create new value. The other is environmental management to conserve the global environment, which is essential for the existence of our business.

At Yokogawa, we believe that human resources management is key to our growth. We have established diversity

and inclusion, and talent attraction and engagement as themes. We create value through a diverse workforce

equipped to adapt to ongoing change. At the same time, we drive transformation aimed at both the individual

and organization. Occupational health and safety represent the bedrock of corporate management. We continue

to pursue the ultimate goal of zero workplace accidents and incidents.

Yokogawa Sustainability Book 11

Page 12: Yokogawa Sustainability Book · providing education, training, and employment in local communities. Yokogawa Sustainability Goals Three goals Statement on Yokogawa’s Aspiration

Yokogawa Electric Corporation2-9-32 Nakacho, Musashino-shi, Tokyo 180-8750, JapanSustainability Promotion Office, Corporate Administration HeadquartersTEL:+81-422-52-7797 FAX:+81-422-55-1202http://www.yokogawa.com/about/sustainability/

Visit the Yokogawa website for more details about our approach to sustainability.

Published September 2018

Partnering in Growth with Local Communities

We provide training and skills development programs in engineering and related fields under formal agreements with several universities in Saudi Arabia, including the King Fahd University of Petroleum Minerals.Yokogawa recruits local engineers.both male and female.

Engineering department of local subsidiary

Kingdom of Saudi Arabia

Supporting skills development, job creation and social empowerment of women

The Technical Center is a joint venture between Yokogawa and the Kazan National Research Technological University. This partnership provides practical training in measurement and control systems in the Republic of Tatarstan.The program includes a simulated production plant where university students and working engineers train on the latest measurement and control systems.

Republic of Tatarstan

Training for engineers in measurement and control systems

Kazan National Research Technological University Working with Mitsui Chemicals, we have developed a unique practical curriculum for training in stable plant operations. We contribute to manufacturing technology engineer development through training that includes control improvements and troubleshooting using a methanol distillation training plant and simulators.

Japan

Practical and theoretical training in stable operating methods for factories

Mitsui Chemicals Plant Operation Technology Training Center

We supply model plants and other industrial equipment on a regular basis to engineering colleges and institutes of technology in Thailand. Our donations help undergraduate engineering students receive hands-on experience in industrial automation and smart factories. Young engineers use Yokogawa products and systems for field training.

Kingdom of Thailand

Simulated production plant for engineering student training

King Mongkut’s University of Technology North Bangkok

Yokogawa has conducted business throughout the world for many decades. We partner with local communities to support sustainable growth tailored to local conditions. Below are some examples of our education and job creation initiatives.

King Fahd University of Petroleum Minerals